[SMM Steel Morning Brief] Ministry of Commerce: China's Outward Non-Financial Direct Investment Reached $22.97 Billion in January-February, Up 9.1% YoY

★Macro★

01 ★★  

Li Qiang: Promote Innovative Spirit to Stabilize Foreign Trade and Accelerate the Construction of New Advantages in High-Level Opening Up

Li Qiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, conducted a survey in Fujian from March 18 to 20. He emphasized the need to thoroughly implement the important speeches made by President Xi Jinping during the Two Sessions, earnestly fulfill the tasks outlined at the Two Sessions, face various unstable and uncertain factors, strengthen confidence, overcome difficulties, and promote foreign trade with an innovative spirit, accelerating the construction of new advantages in high-level opening up.

02 ★★★ 

Bank of England Keeps Benchmark Interest Rate Unchanged at 4.5%

The Bank of England kept its benchmark interest rate unchanged at 4.5%, in line with market expectations. Analysts believe that the UK economy faces multiple challenges both internally and externally, increasing economic uncertainty. Recent data from the National Bureau of Statistics showed that the UK's GDP declined by 0.1% MoM in January. Behind the data, UK businesses continue to face significant cost pressure, and the UK government is considering tax reforms to alleviate business burdens. Externally, the tariff hikes imposed by the US Trump administration may further exacerbate inflationary pressures in the UK. Between stimulating economic vitality and curbing inflation, the Bank of England may have to maintain a cautious monetary policy stance.

03 ★★★ 

Ministry of Commerce: China's Non-Financial Outward Direct Investment Reaches $22.97 Billion in January-February, Up 9.1% YoY

At a regular press conference, spokesperson He Yongqian introduced China's outward investment and cooperation situation for January-February. In January-February 2025, China's non-financial outward direct investment reached $22.97 billion, up 9.1% YoY. Among this, Chinese enterprises' non-financial direct investment in Belt and Road countries was $5.52 billion, up 17.6% YoY. In January-February, the turnover of China's overseas engineering contracts was $18.34 billion, down 5.6% YoY. The value of newly signed contracts was $35.34 billion, up 28.7% YoY. Among these, the turnover of engineering contracts in Belt and Road countries was $15.06 billion, down 5.2% YoY, while the value of newly signed contracts was $30.92 billion, up 33.7% YoY.

04 ★★★  

March LPR Quotations Released: 5-Year and 1-Year Rates Remain Unchanged

The March Loan Prime Rate (LPR) quotations were released: the 5-year LPR remained at 3.6%, the same as last month. The 1-year LPR also remained at 3.1%, the same as last month.

★Industry and Downstream★

01  ★★★  

HBIS and Vale Sign MOU on Decarbonization in Steel Industry Value Chain

HBIS and Vale signed a Memorandum of Understanding (MOU) in Beijing on decarbonization in the steel industry value chain. According to the MOU, HBIS and Vale share a common vision to implement decarbonization solutions that reduce greenhouse gas emissions in their respective operations. They will work together to find the best furnace charge solutions for low-carbon transformation and explore the feasibility of using Tecnored furnaces to process solid waste and extract valuable metals to achieve a circular economy. Both parties will also collaborate on other green and low-carbon development solutions.

02 ★★★ 

SMM Inventory Survey:Warmer Weather: Can the Decline in Construction Steel Inventory Accelerate?

According to the SMM survey, the total inventory of construction steel has decreased for three consecutive weeks, with the decline expanding compared to the previous two weeks. Specifically, rebar inventory decreased by 2.02% WoW, and wire rod inventory decreased by 5.63% WoW.

03  ★★   

Guangzhou: 2025 Key Projects Plan to Invest 381.5 Billion Yuan

Guangzhou issued the 2025 key projects plan. This year, Guangzhou has scheduled 998 key projects, with a planned annual investment of 381.5 billion yuan. Among these, there are 905 formal projects with a planned annual investment of 365.7 billion yuan, and 93 preparatory projects with a planned annual investment of 15.8 billion yuan. Data shows that in 2024, 844 key projects in Guangzhou completed an investment of 414.4 billion yuan, achieving 108.9% of the annual plan. Infrastructure projects achieved 110% of the annual plan, industrial construction projects achieved 107% of the annual plan, ecological and environmental protection projects achieved 118.3% of the annual plan, and urban renewal projects achieved 118.2% of the annual plan.

04  ★★  

Jining, Shandong: Housing Fund Loan Limit for Purchasing Ready-to-Move-in Homes Increased by 10%

The Jining Housing Fund Management Center issued a notice on adjusting some policies of housing fund personal housing loans. To support the sale of ready-to-move-in homes, the maximum loan limit for families purchasing such homes (newly built homes with a ready-to-move-in certificate) will be increased by 10% based on the current maximum limit. Additionally, the minimum down payment ratio for second-home purchases using housing fund loans will be adjusted from 30% to 20%.

05   ★★   

Changsha County Introduces 7-Day No-Reason Cancellation Policy for Home Purchases

The Changsha County Housing and Urban-Rural Development Bureau issued a notice on the implementation of a 7-day no-reason cancellation period for home purchase deposits. Buyers can apply for a refund of the deposit within 7 natural days after signing the subscription agreement; after 7 days, the deposit will automatically convert to a down payment.

06   ★★   

Zhejiang Provincial Housing Fund Center Launches New Policies

To further increase the support of housing funds for housing consumption and alleviate the repayment pressure on contributors, the Zhejiang Provincial Housing Fund Center has improved the housing fund withdrawal mechanism, introducing a service that allows contributors to directly use their housing fund account balance to repay housing fund loans in advance.

★Other Hot Topics★

⭕[Shenzhen Opens Over 200 Billion Yuan Worth of Key Projects to Private Capital, Including Shenshan General Airport and National Long-Distance Fishing Base]From the Shenzhen Development and Reform Commission, it was learned that from March 19 to 21, Shenzhen held four roadshows over three consecutive days, themed "Stimulating Private Investment Vitality, Empowering High-Quality Development," and launched 24 high-quality projects in energy, transportation, and water sectors, with a total investment of 205.01 billion yuan. The transportation sector includes 13 railway, airport, and port projects, with a total investment of 180.7 billion yuan, including the Shenshan General Airport and the Shenzhen National Long-Distance Fishing Base, which are in the early stages with undetermined project entities and locations. The energy sector includes six gas turbine and cogeneration projects, with a total investment of 16.5 billion yuan; the water sector includes five sewage treatment and water plant projects, with a total investment of 7.8 billion yuan.

⭕[Hubei Aims to Produce 1 Million NEVs Annually]At today's 2025 Hubei NEV "Double Hundred Leap" event, relevant departments of Hubei Province released the "Measures to Support the Development of the Automotive Industry (2024-2027)" and the "2025 Hubei NEV Consumption Promotion Policy," proposing to help Dongfeng Motor achieve 1 million NEV sales and production in 2025, and for "Made in Hubei" NEVs to reach 1 million units annually. The Hubei Provincial Department of Industry and Information Technology stated that through supporting industrial expansion, technological innovation, internationalization, key project construction, and strengthening guarantees, they aim to achieve a total vehicle production of over 3 million units by 2027, with NEVs accounting for more than 50%, and L2 and above intelligent connected vehicles making up 90% of new NEV sales, with NEV export value exceeding 40 billion US dollars.

⭕[Some Small and Medium-Sized Banks Accelerate Reduction of Credit Card Business, Shift Focus to Personal Consumer Loans]Recently, many small and medium-sized banks with smaller credit card user bases (less than 8 million cards) intend to accelerate the disposal of credit card asset packages, reduce the scale of credit card business, and shift towards personal consumer loans to optimize their retail business structure. On March 19, a market manager of a city commercial bank's credit card center said that with the maturation of the personal non-performing loan transfer mechanism, the next step will be to package short-term assets under 2 years, and gradually divert and compress credit card personnel and institutions. In the future, credit cards may return to branch management, serving only as a banking product for customer acquisition.

⭕[CATL Continues to Invest in NIO: After 2.5 Billion Yuan, Plans to Invest in Weinan]CATL's battery swapping business is rapidly expanding. Recently, CATL entered into a strategic partnership with NIO and invested up to 2.5 billion yuan in NIO Energy. However, CATL plans to continue betting on battery swapping. Sources revealed that CATL will soon invest in NIO-related battery asset company, Wuhan Weinan. "But the amount will not be as large as the 2.5 billion yuan for NIO Energy."

⭕[Shandong: Aims to Produce Over 1 Million NEVs by 2025]The Shandong Provincial Government Information Office held a press conference, inviting officials from the Shandong Provincial Department of Industry and Information Technology to introduce the province's efforts to vigorously implement the "Top Project" of industrial economy and build a strong engine for economic development. In terms of building a modern industrial system, Shandong will focus on actions such as the "Mother Machine+" industry-demand matching, accelerate breakthroughs in high-tech ship and marine products, consolidate leading positions in core technologies, support commercial vehicle companies to expand overseas, and promote the quality and quantity of the NEV industry, aiming to produce over 1 million NEVs in 2025.